Elmira Nancy
Joined: 13 Nov 2009
Posts: 28
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| Posted: Thu Nov 19, 2009 9:24 am Post subject: |
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Its partially hype but mostly a very hard and painful lesson. I plan on doing a seminar soon on this topic
1. Borrowers. they're not educated enough, they don't understand the entire mortgage process fully and usually don't have a plan to use a home as an investment vehicle. Also, they were greedy, buying too much home and using a home as an atm, meaning if they had equity in the home, they took it out in the form of cash to go on vacation, buy a car, tv, everything but take care of the home itself, the main investment. After the tech bubble crash, everyone was looking for the next quick cash venue, and with homes gaining 10-15% in value each year, it was an easy choice. Fundamentally, as borrower's we've forgotten the value of a dollar and how to save for it.
2. Mortgage professionals. I said borrower's were uneducated, so were many professionals, they did not inform borrowers of the pros and cons of the mortgage programs. There is no perfect mortgage, every program has it's faults. They never assisted borrower's in proper planning either, it was always, refi later, take out equity, to hell with your future tie that in with assisting borrower or fudging borrower's income themselves, you have a recipe for disaster. |
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